Koinexpert KYC & AML Policy

1. General

1.1
An anti-money laundering (hereinafter, “AML”) policy is a strategy used by an organization to prevent and effectively combat money laundering and other financial crimes. KoinExpert (Pty) Ltd, with registration number 2020/649157/07 (hereinafter, “KoinExpert”) together with all of its subsidiaries, constituents and service providers, is committed to implementing and enforcing an effective anti-money laundering policy.
1.2
This anti-money laundering policy (hereinafter, “AML Policy”) applies in respect of any product and/or service provided by KoinExpert, primarily, but not limited to its website, and/or related mobile applications. The AML Policy further binds and is applicable to the entirety of KoinExpert’s business structure, including all directors, officers, employees, contractors, and other third parties where relevant.
1.3
For purposes of this AML Policy, “money laundering” and “terrorist financing” shall mean “an activity which has or is likely to have the effect of concealing or disguising the nature, source, location, disposition or movement of the proceeds of unlawful activities” and “the provision of funds or providing financial support to individual terrorists or non-state actors”, respectively. In addition, this AML Policy will also act to
1.4
Further to the aforesaid, KoinExpert is committed to operating in accordance with the highest ethical standards. It is critical to our business structure to remain compliant with all applicable laws and regulations that are aimed at combating money laundering. Accordingly, the purpose of this AML Policy is to reduce the risk of money laundering and provide a guide that outlines our responsibility in respect of anti-money laundering and counter-terrorist financial laws (hereinafter, “AML Laws”).
1.5
In order to give effect to this AML Policy, KoinExpert has appointed an “Anti-Money Laundering Officer” (hereinafter, “AML Officer”), who’s details are as follows:-
1.5.1
Ardi Coetzee (Ardi@KoinExpert.com / +27 (0) 72 994 8745).
1.6
Any KoinExpert employee who violates the rules in this AML Policy or who permits or aids anyone to violate any of these rules will be subject to the appropriate disciplinary action which may include dismissal, fines and/or legal prosecution.
1.7
Any KoinExpert client who violates the rules in this AML Policy or who permits or aids anyone to violate any of these rules will be reported to the relevant authority and/or criminally reported.
1.8
KoinExpert will review this AML Policy on a regular basis to ensure it remains effective and in line with regulatory demands. Should changes be made to this policy, the last update date will be modified on this document and if deemed necessary we will send out an email to alert relevant stakeholders.
1.9
This AML Policy was last updated on: 12 November 2020

2. Financial Intelligence Centre

2.1
Prior to engaging and using KoinExpert’s products and/or services, the following may be collected from clients as mandated inter alia by the Financial Intelligence Centre Act, No. 38 of 2001 (hereinafter, “the Act”), namely: -
2.1.1
Proof of Address;
2.1.2
Proof of Banking Details; and
2.1.3
Proof of Source of Funds.

3. Breaches and Reporting

3.1
It is our policy to comply with global AML laws and consequently, we only conduct business with verified clients who conduct legitimate business activity and whose funds are derived from legitimate sources.
3.2
External Reporting
Notwithstanding the aforesaid, KoinExpert, where considered to be an “accountable institution”, strictly adheres the obligations placed upon it under the Act. This specifically includes the obligations as set out in Chapter 3 thereof in respect of AML measures and the Financial Intelligence Centre of South Africa (hereinafter, “FICA”).
3.3
In respect of the aforesaid, KoinExpert specifically reserves its rights to compile Suspicious Activity Reports (hereinafter, “SAR’s”) comprised of user and transaction information in respect of all transactions, and furnish said SAR’s to FICA as set out in Part 3 of Chapter 3. Accordingly, the following reporting mechanisms shall be in place: -
3.3.1
Cash transactions with a value higher than R 25 000.00 (Twenty-five thousand rand), will be reported to FICA as soon as KoinExpert becomes aware thereof, alternatively, within 2 (two) days from the date of such transaction, as per Section 28 of the Act;
3.3.2
Transactions which have been identified as pertaining to property associated with terrorist and related activities as defined under the Act, will be reported to FICA as soon as KoinExpert becomes aware thereof, alternatively, within 2 (two) days from the date of such transaction, as per Section 28A of the Act;
3.3.3
Transactions which have been received or are soon to be received, and which have been identified or reasonably suspected to be proceeds of unlawful activities or property which may be connected to an offence relating to the financing of terrorist and related activities, will be reported to FICA as soon as KoinExpert becomes aware thereof, alternatively, within 15 (fifteen) days from the date of such transaction, as per Section 29 of the Act. For purposes of the aforesaid, KoinExpert will specifically report activities of the following nature , namely: -
3.3.3.1
facilitating the transfer of proceeds of unlawful activities;
3.3.3.2
facilitating the transfer of property connected to the financing of terrorist and related activities;
3.3.3.3
if the transaction has no apparent business or lawful purpose;
3.3.3.4
if it is to avoid any duty to report in terms of FICA;
3.3.3.5
the evasion of tax, duties and levies administered by the South African Revenue Service (hereinafter, “SARS”); and
3.3.3.6
the financing of terrorist and related activities.
3.3.4
Transactions, whether cash or otherwise, which involve the ingress and/or egress of funds with a value higher than R 25 000.00 (twenty-five thousand rand) to or from the Republic of South Africa, will be reported to FICA as soon as KoinExpert becomes aware thereof, alternatively, upon demand by FICA, as per Sections 30 and 31 of the Act (the aforesaid will be operative as from the date upon which the aforesaid Sections’ commencement is proclaimed).
3.3.5
In respect of the aforesaid, KoinExpert strictly reserves its rights not to disclose any information regarding the reporting of the aforesaid, either to the party being reported or otherwise.
3.3.6
Internal Reporting
Employees of KoinExpert are obliged to read and follow this Policy and if a known or suspected breach of this policy is identified, it is the duty of employees to report it to a senior staff member immediately or failing that, to one of the directors of the company or by sending an email directly to: legal@KoinExpert.com., alternatively, flagging the breach to the AML Officer.
3.3.7
All reported breaches and incidents will be reviewed and, if deemed necessary, will be reported to the relevant authorities. If the authorities should seek further information related to the incident or breach, KoinExpert and its staff will provide complete cooperation and assistance to authorities as needed.
3.3.8
Employees must not notify anyone involved in a suspicious transaction that it has been flagged and no further steps must be taken until instructions have been provided to an employee by a senior staff member.

4. Sharing of Information and Record Keeping

4.1
KoinExpert respects the privacy of its customers, as has been outlined in our Privacy and Personal Information Policy. It is, however, also our duty to remain within the boundaries of the law and assist regulatory authorities in cases where it is required of us to do so.
4.2
Regulatory authorities and law enforcement officials can request information by contacting our duly appointed AML Officer at the details as set out above, or alternatively, make a submission via our website and the electronic form appearing thereupon. A submission on our contact form will generate a support ticket with a unique identifier and will be assigned to the AML Officer’s office. Each submission will be dealt with on a case-by-case basis. A support ticket is required for every single interaction with KoinExpert and forms a crucial logging/tracking point. Due to our support desk’s vital role, we have made it an integral part of our website and the security thereof and our website remains our highest priority.
4.3
KoinExpert has no intention of sharing information with non-regulatory bodies or anyone that is not a law enforcement official. Over time it might become useful to share information with other financial institutions as it might help with identifying fraudulent activity and patterns. If that time comes, this policy will be updated to reflect the change.

5. Sanctions Lists

5.1
Given that citizens and residents of the United States, as well as many other countries around the world, are prohibited from dealing with entities listed on the Office of Foreign Assets Control’s Specially Designated Nationals List (hereinafter, “SDN”), we are mandated to check all sanctions lists before opening an account, operating an existing account or partnering with a new client.
5.2
Before a new client may engage any of KoinExpert’s products and/or services, they will go through a third party AML verification check. This AML check is a step in our KYC onboarding process, further elaborated upon below.
5.3
KoinExpert employs a canvassing of Dow Jones for all AML checks. These checks are executed via an API call to their website and the result is stored on our website, and its client database. Continuous monitoring is also implemented, which sends us a notification if a previously unmatched client is added to a list after the initial signup of a new client.
5.4
The query that is sent by way of automated process to Dow Jones specifically to query their “Watchlist” records. For purposes of this AML Policy, the “Watch-list” is understood to be a grouping of the recommended set of sanction lists, which consist of: -
5.4.1
ECR – Enhanced Country Risk;
5.4.2
OEL – Other Exclusion Lists;
5.4.3
OOL – Other Official Lists
5.4.4
PEP – Politically Exposed Persons;
5.4.5
RCA – Relatives and Close Associate;
5.4.6
SIP – Special Interest Persons; and
5.4.7
S – Sanction Lists.

6. Know Your Client

6.1
Know your client (hereinafter, “KYC”) and know your business (hereinafter, “KYB”) are initiatives of best practice geared towards an enterprise knowing, to the fullest extent possible, the clients with which it engages. Further to this, it gives effect to the AML obligations undertaken by us. The use of our website, products and/or services are reserved in respect of this AML Policy and the KYC mechanisms associated thereto.
6.2
In respect hereof, and in addition to the FICA documents as set out above, KoinExpert may at the outset of providing its products and/or services to you as the client, request various sets of information from you, in the following manner, in order to “get to know you”, namely: -
6.2.1
In the course and scope of your engagement with KoinExpert’s website, products and/or services, KoinExpert may monitor you for “proof of life”, i.e. to establish whether you are a natural person or a bot and/or automated system. KoinExpert reserves the right to refuse access to its website, products and/or services if it is identified that any activity is “bot-like” or unnatural;
6.2.2
KoinExpert may require documentary proof of, amongst other things, your identity document, passport or drivers license;
6.2.3
KoinExpert may require documentary proof of residence;
6.2.4
KoinExpert may require documentary proof of income or any funds deposited with us;
6.2.5
KoinExpert may conduct screening in respect of flagging politically exposed persons (DPIP and FPPO);
6.2.6
KoinExpert may conduct screening in order to establish whether you come up as part of any negative media content;
6.2.7
KoinExpert may conduct screening in order to establish whether you are flagged as part of any international targeted financial sanctions list, as articulated above; and
6.2.8
KoinExpert may require you to complete a comprehensive “know your client disclosure” questionnaire.
6.3
KoinExpert is under an obligation to continually conduct the aforesaid KYC screenings throughout the course and scope of your use of our website, products and/or services.
6.4
KoinExpert reserves the right employ an automated process in respect of implementing any of the aforesaid KYC screenings, as provided for in Clause 6.2. above.
6.5
All of the aforesaid information collected and disclosures received will be subject to strict compliance with KoinExpert’s Privacy and Personal Information Policy.

7. Information Retention and Record Keeping

7.1
Notwithstanding any of the aforesaid, KoinExpert further reserves its rights to retain any and all information collected in view of the mechanism set out hereunder in forwarding the notions of AML and KYC.
7.2
Specifically in respect of our FICA obligations, we record the following: -
7.2.1
That KoinExpert will keep a record of all FICA documentation collected from clients, as per Section 22 of the Act; and
7.2.2
That KoinExpert will keep a record of all transactions facilitated by its products and/or services, as per Section 22A of the Act, including information regarding: -
7.2.2.1
The amount involved and in which currency it was denominated;
7.2.2.2
The date upon which the transaction was concluded;
7.2.2.3
The parties to the transaction;
7.2.2.4
The nature of the transaction;
7.2.2.5
Business correspondence; and
7.2.2.6
The identifying particulars of the relevant account as held with KoinExpert.